The Toyoda Model AA was the fist production passenger car by Toyota. Designed and manufactured under the leadership of Kiichiro Toyoda at the automobile department of Toyoda Automatic Loom Works, the Model AA incorporated the design principles that were current in the U.S., the global leader of the auto industry at the time. Specifically, it was modeled after the De Soto Airflow, which embodied Chrysler's pioneering design approach to improve the ride comfort of rear passengers. The streamlined body styling and the rational load balancing between the front and rear wheels resulted in superior ride comfort for rear passengers and a spacious cabin.

The engine, modeled after that of the Chevrolet, was a 3,389 cc water-cooled inline 6-cylinder OHV unit that produced 65 hp/3,000 rpm. The Model AA was first announced in Nagoya in July 1936, and then in Tokyo in September. The initial price in Nagoya was 3,350 yen, and a total of 1,404 units were produced by 1942. In 1937, the year following the debut of the Model AA, Toyota Motor Co., Ltd. was established to commence full-scale auto manufacturing operations.